Circular mutual funds

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Securities and Exchange Board of India
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CIRCULAR
SEBI/HO/IMD/DF2/CIR/P/2017/35 April 28, 2017
All Mutual Funds/Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds
Sir/Madam,
Subject: Circular on Mutual Funds
1. Please refer to SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2016/42 dated
18 March 2016.
2. In partial modification of the above mentioned circular, para C of the circular
pertaining to disclosure of executive remuneration shall read as under:
“With the underlying objective to promote transparency in remuneration
policies so that executive remuneration is aligned with the interest of
investors, MFs/AMCs shall make the following disclosures pertaining to a
financial year on the MF/AMC website under a separate head –
'Remuneration':
1. Name, designation and remuneration of Chief Executive Officer (CEO),
Chief Investment Officer (CIO) and Chief Operations Officer (COO) or
their corresponding equivalent by whatever name called.
2. Name, designation and remuneration received by top ten employees in
terms of remuneration drawn for that financial year.
3. Name, designation and remuneration of every employee of MF/AMC
whose:
a. Annual remuneration was equal to or above one crore and two lakh
rupees for that financial year.
b. Monthly remuneration in the aggregate was not less than eight lakh
and fifty thousand rupees per month, if the employee is employed for
a part of that financial year.

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Securities and Exchange Board of India
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4. The ratio of CEO's remuneration to median remuneration of MF/AMC
employees.
5. MF's total AAUM, debt AAUM and equity AAUM and rate of growth over
last three years.
For this purpose, remuneration shall mean remuneration as defined in
clause (78) of section 2 of the Companies Act, 2013.The AMCs/MFs shall
disclose this information within one month from the end of the respective
financial year (effective from FY 2016-17).”
3. This circular is issued in exercise of the powers conferred under
Section 11 (1) of the Securities and Exchange Board of India Act 1992, read
with the provision of regulation 77 of SEBI (Mutual Funds) Regulations, 1996
to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market.
Yours faithfully,
Harini Balaji
General Manager
Investment Management Department
Tel no.: 022-26449372
Email: harinib@sebi.gov.in